Assets invested in Leverage and Inverse ETFs and ETPs listed globally reached a record USD89.64 billion at the end of July.
Leveraged and Inverse ETFs and ETPs gathered net inflows of USD203 million during July and YTD gathered net inflows of USD20.56 billion which is significantly more than the YTD net outflows of USD3.4 billion during 2019 and the full year 2019 net outflows of USD4.13 billion, according to ETFGI’s July 2020 Leveraged and Inverse ETF and ETP industry landscape insights report, a monthly report which is part of an annual paid-for research subscription service.
“The S&P 500 gained 5.5 per cent during July,” says Deborah Fuhr, managing partner, founder and owner of ETFGI. “Totally the market is 1.25 per cent up during the first month of Q3 which overcome the historical collapse of pandemic. During July the tech giants achieved again a great month. Developed markets outside the US were up 3.04 per cent. In July, the three Scandinavian countries Norway (up 10.78), Sweden (up 10.11) and Finland (up 9.18) were the leaders. Emerging markets gained 8.47 per cent in July and are up 19.86 per cent in Q3.”
At the end of July 2020, the Global leveraged/inverse ETF/ETP industry had 875 ETFs/ETPs. Of these 875 ETFs/ETPs, 445 were leveraged products, while 213 were inverse listings, and 217 were Leveraged/Inverse.
Global leveraged/inverse ETF and ETP asset growth as at the of end of July 2020
The majority of assets were invested in Leveraged ETFs/ETPs with USD53.7 billion, followed by Leveraged/Inverse products with assets of USD19.7 billion and Inverse with USD16.3 billion.
The largest market for leveraged and inverse ETFs/ETPs is the United States, which, at the end of July 2020, had assets of USD54 Bn invested in 243 ETFs/ETPs.
The Samsung KODEX 200 Futures Inverse 2X ETF – Acc gathered USD2.22 Bn alone, the largest net inflow year-to-date to July.